Los Angeles Rezoning Opportunity

5742 N. Elmer Ave, North Hollywood, CA
7250 square foot lot.

The Investment Strategy: Buy and Rezone

The property has multiple apartment complexes dotted along the street. The home was built in 1920 and is a prime candidate for demolition. Buy the property, apply for a rezoning to multifamily which would allow the building of an apartment complex. Then, either sell the property for a profit to developers or complete the construction yourself.

This is an advanced strategy and is not recommended for beginning investors. The profits for this opportunity are not easily quantified because the cost of holding the property before it is rezoned can be substantial. Additionally, construction costs and zoning compliance can be highly variable and are beyond my expertise. To minimize costs, the property could be rented out for at least the mortgage payment.

The Location: Right off of Lankersheim

Walking distance to many, many desirable renter-friendly businesses. This particular street has a ghetto feel to it, with multiple males standing around together on the sidewalk before 5:00 PM. There is new construction on this street and new businesses popping up within a short walk. As rental rates rise, the less desirable elements should be squeezed out. Available parking is sparse.

To view this property, call me at (818) 726-5982. You will need at least 10% down payment to buy this property ($42,500). To view more properties online, click here

Alternate Strategy: The property is currently zoned R1.5, meaning that the owner has a right to build a guest house on the property. To cash flow the property, build the guest house and rent it out for additional income while applying for the rezone.

Guest House Tips: There are 3 things you need to do to optimize the income from a guest house. 1) Create Privacy 2) Give each unit its own yard 3) Give each unit its own separate entrance. Do these three things and a full guest house (with kitchen and bath) should double it's rental value.

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What am I doing?

I have been finding awesome investment opportunities for my investors for a long time and I come across so many properties that my investors and I cannot buy, fix, construct, rent, and manage them all.
When I talk to people about how easy it is to make these opportunities pay off, I realized that their interest level is very high and that they would love to know more. If these people could only feel as comfortable as me and my investors with doing what we do, there is nothing to stop them from taking advantage of these investment opportunities.
There are millions of books with principals, theories, general ideas about Real Estate investment. I couldn't find anything with real properties that are for sale now, illustrating how to turn these into money makers. This blog is for people who a want passive cash flow, financial leverage, and the tax advantages of owning Real Estate.
All these people need is a little knowledge and advice, confidence, and to see the numbers in black and white. That is what I am going to do! You will find bits of education, tips, and important notes in big type so that you can't miss them. You will see the important numbers in similar size.
Come back often, the first person to write a check and claim a property is the one who will get it. Let me know what you think with your comments, add your own tips and knowledge, and thanks for reading!

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Entry Level Fixer

Image by simonov via Flickr6224 Denny Ave, Los Angeles (North Hollywood), CA
What is your investment strategy? Fix and rent.

$398,000
The Numbers: 10% down ($39,800) with a monthly payment of approximately $2,200 per month with insurance, taxes, and cost of interest on the $40,000 down payment from a home equity line of credit included. Will rent for a minimum of $3,000 per month after recommended work is performed (I can find you tenants that will pay more than $3,000).


The Terms: The offer should be full priced, as the home is priced very well. A 3% credit back to the buyer will help cover closing costs and renovations ($12,000).



Your Profit: $800 per month minimum


The Location: North Hollywood is going through a revitalization. The NoHo arts district is close by, with hip restaurants and entertainment. Nearby 3+3 homes that are like new are listed for $750,000. North Hollywood is one of the few Los Angeles areas with entry level homes selling for under $400,000. This property is located just north of Oxnard, and is on the edge of a very desirable area. The price is right.



The home statistics:

Beds 3

Baths 2

Style Contemporary

Stories One Level

ASqFt 1,310

YrBlt 1943

ALotSize 7,379

About Privacy:
Property already has plenty of privacy, which is one key to creating value and getting premium rents.
Recommended work:


Cut back overgrown plants all over property: $200
Clean up pond, add gold fish and lily pads: $100
Plant new landscaping in a few, select places: $100
Remove old furniture, plant waste, construction debris: $300

Plant new grass seed in front yard: $150


















THE Feature:
The pool is THE feature for this property. Creating a feature such as a fish pond, pool, jacuzzi, or other centerpiece for the yard is a key element to creating value and obtaining higher than average rents.

The pond is already present, but in unimpressive, small, and poorly situated. The pond cannot count as the necessary feature because of its shortcomings.
Tip for ponds: Use gold fish, not expensive Koi. Renters may not feed the fish, may let the pond dry up, or simply not take proper care of fish. Gold fish turn wild and adopt entertaining behavior when put in an outdoor environment.


Tile floors throughout 65% of home with neutral, durable tile: $3,500
Repaint entire interior with neutral, sand colored paint: $750

Other property features: Enclosed patio that adds value to the property, not included in square footage. 1 carport. Detached garage. TONS of storage.





Kitchen is clean, no needed work. New counter tops would add value for resale, but not needed for the first two years of renting.
Total Fixing costs of $5,100
To open escrow, you need to write a check for $12,000 from your savings or home equity line of credit as your earnest money deposit.
$40,000 down payment
+ $5,000 renovation cost
- $6,000 credit (closing costs already removed)
= $39,000 required for this opportunity
Foreign investors without a credit history will need 30% down, or $133,333 to get a mortgage.
View more homes in North Hollywood: http://realvana.com/california/los-angeles/north-hollywood.html
To take this opportunity or to look for similar investment opportunities, call me at (818) 726-5982

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